Former Bandhan Bank chief says microcredit should fund borrowers’ businesses

Ghosh says microcredit should help people build businesses, not be treated like an ordinary personal loan.

He argues lenders need to understand a borrower’s business and ability to repay, including through visits and group meetings.

Digital tools can help with records and payments, but he says they cannot replace that contact.

The approach matters because borrowers who cannot get formal loans may turn to moneylenders, he says.